Financial Services

Asset Transfers – Large Financial Services Company

A Large Financial Services Company required assistance with converting new client’s portfolios into the company’s internal systems. The assignment required Relevante’s professional to translate the incoming assets into the company’s internal system under tight timelines.

Relevante’s professional’s time was distinguished by the high level of activity. Assets totaling more than $100 million were moved into the client’s system. Attention to detail, timeliness and establishing good lines of internal communication were critical. The professional’s responsibilities were expanded to auditing trades and cash disbursements. During this time, the asset conversion process was under review for restructuring and automation. The Relevante professional provided information in the analysis phase of the project as to volume and variety of the asset activity. They also were consulted as an information source for the current process.

The Relevante professional was able to seamlessly fit into the organization and assume the responsibilities of the position.

Research Report – Leading Financial Services Company

A leading financial services company based in Philadelphia, PA needed to identify new business segments so as to garner greater market share. They needed to achieve this by leveraging their existing resources & with a minimal amount of additional spending.

The client requested Relevante to develop a strategic overview document which would identify the specific segment in the financial services domain that they needed to expand into.

Relevante’s professionals identified the lucrative factoring industry as the core new business segment. This business segment fitted in well with the client’s existing leasing business as it was a forward integration of its existing business line and could be done without incurring large capital as well as revenue expenditure. Factoring services coupled with related financial services like credit recommendation services & private label programs gave the client the ability to increase its revenues & profitability thereby successfully leveraging their existing resources to achieve greater productivity.

Relevante’s professionals prepared a detailed overview document which highlighted the following:

Size of the factoring industry
Relevante’s professionals sized up the existing and the potential market both internationally and within the USA. This analysis enabled the client to understand the various facets of the opportunity that lay ahead of them.

Competitive landscape in the USA
The Relevante team analyzed the existing players in the factoring industry on various parameters including turnover, market share, geographical presence, focus areas of business, profitability etc. This analysis enabled the client to understand the benefits that they could achieve by leveraging their existing resources to a greater extent.

Factoring Products
The existing product offerings of the competition were analyzed and the high revenue drivers were identified by the Relevante team which was factored into the recommendations made to the client.

Financial models used by the competition
The financial models of the competition were analyzed so as to identify the capital structure model & the overall profitability drivers.

Sales & marketing strategies
The sales and marketing strategies adopted by the competition were analyzed and that enabled Relevante’s professionals to provide the client with a strategic marketing framework that was currently being followed by the industry leaders in the segment.

Technology requirements of the industry
Since the factoring industry is a highly knowledge based and service oriented business, Relevante’s professionals suggested a technological solution that took into account risk management, pricing, market intelligence, structured deals and legal and operational complexities.

Laws & regulations affecting the industry
Since the factoring industry in North America is unregulated, with the exception of those factors that are bank-owned and who report to the United States Federal Reserve Bank, the provisions of the Uniform Commercial Code Article 9 which have a bearing on the factoring industry were analyzed in detail and their implications were highlighted in the overview document to the client.

Key manpower requirements of the industry
Human Resources in the factoring industry includes people who understand the businesses of their clients very well in order to be able to provide best in class services in a competitive financial services industry. Therefore key management and operational personnel that satisfied the above criteria were identified. Relevante’s professionals also assisted the client with the staffing requirements that were needed to kick start operations and move forward effectively.

Post Acquisition Integration: Financial Services Organisation

A high level team of financial services professionals, which included executives from JP Morgan, AT&T’s NCR division, and Deloitte & Touche, devised a growth by acquisition plan in the bank service provider market. The strategy included acquiring existing providers and integrating new technology to operate more efficiently as well as provide better products and services to its customers. Relevante was challenged to research and identify various acquisition candidates as well as assist in structuring and integrating the operations, post closing.

Relevante consultants created a Microsoft Access database of acquisition candidates which included detailed contact information, selection criteria and conversation tracking. Once an active candidate, Relevante managed the document coordination between buyer and seller and managed the due diligence process. Relevante executed the financial and administrative due diligence programs as well as assisting management in transaction structuring and acquisition financing.

Once an acquisition was complete, Relevante personnel were responsible for executing the financial and accounting integration. Relevante consolidated accounting systems onto the MAS200 platform and coordinated the billing automation from a mainframe billing system to MAS200. Relevante also assisted management in various finance related projects including software licensing pricing analysis, contract versus invoice revenue analysis, and restructuring (RIF) analysis.

Sarbanes Oxley Compliance- Major Regional Bank

A Major Regional Bank engaged several Relevante consultants to perform procedural reviews and testing on numerous internal control processes established upon a COSO framework. This 72 branch Bank required such on over 70 internal control cycles as part of its Sarbanes-Oxley (“SOX”) Section 404 compliance. Our professionals additionally completed numerous FDICA regulatory, and SOX 302 compliance reviews using a synergistic audit program approach.

Our consultants recommended improvements to the Bank’s internal control processes where needed and their contributions were critical in enabling the Bank to document effective internal control cycles, and meet the Bank’s deadlines for SOX and FDICA compliance.